When a business makes a purchase from a supplier. First, a purchase order is generated. Example, 5 gromits for £5, from Percy’s Products. When the items are delivered, they come with a delivery note from the supplier. After that, the invoice is sent by the supplier., a request for payment.. if some gromits are too round, or other fault. Items may need to be returned to the supplier. In turn, suppliers may send a business a Credit Note. To repay gromits to the recipient.
Invoices and Credit Notes have certain details on each one… Because, a Credit note is an invoice in reverse..
Purchase order, delivery note, invoice and delivery note should be collated, for each item received as a complete order details. The invoice, and Credit note should then be logged on the bookkeeping system.. collated details then are filed away, for safe keeping..
Invoices should always have the seller’s name, company address, vat number, recipient’s name, what goods were supplied, and in which quantity.. Similarly, with credit notes.
Knowing VAT applicable rates is useful. These days, there are 20%, 5% and 0% rates for different items..
,
That’s useful to know.?
Dave T.
Blogging again? 